Thinking about starting a marketing agency business? With over 433,400 advertising agencies worldwide, it’s no wonder this option is a popular choice.
Whether you’re a marketing expert looking to strike out on your own, or an entrepreneur with a passion for business, starting a marketing agency can be an exciting and rewarding venture.
But with so many things to consider, from the type of services you’ll offer to your target audience, it can be overwhelming to know where to begin. That’s why we’ve put together this guide, complete with tips from agency owners, to help you get your marketing agency off the ground.
We’ll cover everything from defining your niche and building a solid brand to attracting clients and delivering top-notch service.
Let’s dive in.
What Is a Digital Marketing Agency?
A digital marketing agency is a business that specializes in creating and managing digital marketing campaigns for companies. These agencies typically provide services such as website design, search engine optimization (SEO), content marketing, social media marketing, pay-per-click advertising, and more.
By leveraging the power of the internet and various tools, digital marketing agencies help businesses reach their goals faster and more efficiently than ever before.
What Are the Types of Digital Marketing Agencies?
Digital marketing agencies come in all shapes and sizes. So, knowing what is right for you can be tricky.
To make things easier, let’s break down some of the most common types of digital marketing agencies:
• Full-Service Digital Agencies. These agencies offer various services, including website design, SEO, content creation, social media management, and more. They provide comprehensive coverage when it comes to digital marketing needs.
• Specialized Digital Agencies. These agencies focus on one or two specific areas of digital marketing, such as social media or PPC advertising.
• Freelance Digital Agencies. These are individual freelancers who specialize in providing digital marketing services. They usually work on a project-by-project basis and charge hourly or fixed fees for their services.
How to Start a Marketing Agency Business Step by Step
Step 1: Identify a Viable Target Market
The first step when starting a digital marketing agency is identifying your target market. Think about who your ideal customer is and what services they may need.
Ask yourself what types of businesses can benefit from digital marketing services. Which industries are currently underserved in the digital space? Who are the decision-makers within these businesses?
Knowing your target market will help you create a tailored approach to developing campaigns and services that appeal to them. Researching current trends and industry benchmarks will also help create an effective business plan.
Step 2: Define Your Niche
Now that you’ve identified your target market, it’s time to define your niche.
What services will you offer? How much are you planning to charge for your social media services? Will you focus on a specific industry or technology? Do you want to specialize in certain types of campaigns? Knowing what type of digital marketing services you will provide will help guide your business decisions going forward.
Furthermore, consider what makes your agency unique and why potential customers should choose you over the competition. This is a great way to stand out in an increasingly crowded digital marketing space.
Plus, when you work within a specific niche, you can develop streamlined processes for delivering services to clients. This means you’ll be able to onboard new marketing clients more quickly and efficiently, and you’ll be able to provide a more consistent experience for all clients.
Step 3: Set Up The Foundations
Before you start marketing your services, it’s critical to set a few financial and operational foundations.
First, define your service offerings. Will you sell one-off projects, monthly retainers, or performance-based campaigns? Packaging your services makes it easier for clients to understand your value—and streamlines your sales process. Here’s a breakdown of social media management packages to help you decide what fits best.
Once you know what you’re selling, it’s time to price it. Pricing too low can hurt your margins, while pricing too high without proven value can scare off leads. Learn how to price your social media management services smartly to grow sustainably.
Also, make sure you have all the legal stuff in place. By that, we mean having a social media contract that you’re ready to send to your clients. Contracts are important because they protect your time, scope of work, and cash flow. Use this social media agency contract guide to set clear expectations with clients from the start.
With your packages, pricing, and contracts in place, you’ll be ready to confidently market your agency.
Step 4: Market Your Agency
Now it’s time to get the word out about your agency and create a successful marketing strategy. There are a few different ways you can do this.
Create a Website
Creating a website for your digital marketing agency is an important step in getting your business off the ground. Having a website gives potential customers a place to learn more about what you offer and why they should choose you over other agencies.
It also allows you to showcase your work and services, which can help build trust with potential leads. Additionally, having a website will make it easier for customers to contact you and inquire about services.
Get on Social Media Channels
Getting on social media channels is a great way to spread the word about your digital marketing agency and reach potential clients. Not only can you use social media to share content, but it’s also an effective tool for building customer relationships.
Posting regularly and engaging with users is critical to growing your presence on these platforms. Additionally, consider running ads or sponsored posts to reach even more people and get the word out about your services. With a successful social media strategy, you can build an audience and generate more leads for your business.
Check out our guides if you need help starting your company’s LinkedIn page or establishing your TikTok presence.
Start Cold Outreach
Starting cold outreach is a great way to increase the visibility of your digital marketing agency and reach directly your ideal customers.
Cold outreach involves sending emails, making phone calls, or even networking in person with prospective clients who may not be aware of your services.
When reaching out to potential customers, it’s essential to keep things professional yet friendly and make sure that you understand their needs. Once you’ve established a relationship, you can discuss how your services can help them achieve their digital marketing goals.
Step 5: Hire a Team
Once you have your digital marketing agency up and running, the next step is to hire a team. Having the right people can make or break your business, so take the time to find people who are knowledgeable in the field and passionate about what they do.
Depending on the size of your agency, you may need to hire a team of freelancers or bring on full-time employees. Make sure that you establish clear expectations for each role, provide training, and create an environment where your team can thrive.
With a strong team in place, you can provide quality services and grow your digital marketing agency even further.
📖 Related Read: How to Build a Social Media Team in 6 Steps (Agency Guide
Step 6: Find Your First Clients
Finding your first clients can be a daunting task. The key to success is to be proactive and reach out to potential customers who may need your services. Consider networking at industry events, sending cold emails, or even posting on job boards.
Once you’ve established relationships with these leads, follow up regularly and keep them informed of any new services or projects you have in the works.
📖 Related Read: 11 Foolproof Ways to Get Social Media Clients for Your Agency
Step 7: Perfect Service Delivery
Now that you’ve got your digital marketing agency up and running and have identified clients to work with, it’s time to nail down service delivery—the way you consistently fulfill your promises to clients.
A well-defined service delivery process ensures your customers know exactly what to expect from you at every stage. This could include setting expectations upfront, providing regular updates, reporting on KPIs, and gathering feedback after major milestones.
Strong systems not only create better client outcomes, they also protect you and your team from overload. Without clear workflows, it’s easy for agencies to experience creative burnout, missed deadlines, and inconsistent quality. Here’s how to tackle creative burnout inside your agency before it threatens your growth.
Building operational discipline early creates happier clients—and a healthier, more sustainable agency.
Step 8: Acquire More of Your Top Clients at Scale
As your digital marketing agency grows, you’ll want to focus on acquiring more of your best clients at scale. This means identifying and targeting potential customers who are most likely to benefit from your services and then developing a plan to reach them.
Consider running targeted campaigns on social media or setting up automated email sequences. Additionally, look into sponsored posts or online ad campaigns that can help you get in front of the right people. By doing this, you’ll be able to expand your customer base and bring in more business for your digital marketing agency.
Tools You Need to Run a Digital Marketing Agency
When running a digital marketing agency, having the right tools at your disposal is vital to success.
From email marketing and project management software to analytics tools and automation platforms, there are many essential tools that you’ll need in order to run your business efficiently.
Portfolio
As you start working with your first clients and completing campaigns, it’s essential to build a strong creative portfolio.
A well-crafted portfolio showcases the results you’ve achieved and serves as one of the most powerful tools for converting leads. Let’s be honest—if you’re in a creative field and don’t have work to show, that’s a red flag. Start compiling your most successful campaigns and use them to attract and win new business.
Email Marketing Solutions
Email marketing is a great way to reach out to potential customers and keep them updated on what you have to offer. Automated email sequences can also help you nurture leads, build relationships, and increase conversions. Popular options for email marketing include MailChimp and Constant Contact.
Project Management Software
Project management software allows you to stay organized and on track with all of your projects. This type of software typically offers features such as task tracking, collaboration tools, and reports so that you can better manage your client’s campaigns. Popular options for project management include Asana and Basecamp.
Social Media Management Platforms
If your agency plans to specialize in social media campaigns, you’ll need a platform to streamline and automate your workflow. That’s where Gain comes in. Our tool makes it easy to manage social media clients at scale by combining content planning, publishing, client collaboration, and content approval workflows—all in one platform.
Analytics Tools
Analytics tools are essential for measuring the performance of your digital marketing campaigns and tracking social media KPIs. Google Analytics is a great option, as it provides in-depth insights into website traffic, user behavior, and key conversion metrics. Other popular tools include native social media platforms or Rival IQ.
To deepen your insights even further, learn how to run a social media audit—a crucial step to optimize client performance and identify new growth opportunities.
Automation Platforms
Automation platforms can help you streamline processes and automate repetitive tasks such as posting blog posts or sending emails. Popular options for automation include Zapier and Parabola.
All in all, having the right tools in place makes running your digital marketing agency much more straightforward and ensures you can deliver results for your clients.
Ready to Start a Marketing Agency?
Starting a marketing agency is an exciting and rewarding endeavor, as long as you are willing to put in the work. By following these steps and investing in the right tools and team, you can ensure that your business will be successful well into the future.
Additionally, don’t forget to stay on top of industry trends and monitor your competition to stay ahead of the curve. With some hard work and dedication, you can create a thriving business that offers amazing services to its customers.
Looking for scalable software to manage your future clients’ social media accounts? Gain is the tool you need in your arsenal. Book a free demo!
